A cybersecurity integration company recently secured a $260,000 contract with the Defense Finance and Accounting Service (DFAS) for a security camera upgrade at a Joint Base. The project required sourcing components from multiple vendors and integrating them with the existing system. Despite having the skills and experience to handle the project, the company encountered a significant roadblock when a new vendor refused to extend credit, resulting in a $130,000 upfront cost. This financial strain threatened the project’s success.
The Challenge
The cybersecurity company needed to pay a new vendor $130,000 upfront while managing payment terms with other vendors. The lack of credit from the new vendor created a substantial financial burden, jeopardizing the project’s completion.
The Solution
SouthStar Capital stepped in with their Government Contract Financing program. They paid the vendor and covered the full cost of the cameras and shipping. Upon delivery and invoicing, SouthStar Capital factored the work-completed invoices, paying off the purchase order financing and providing additional funds for the company to pay other vendors within their terms.
The Result
- Immediate Access to Cash: SouthStar Capital’s financing covered the upfront costs, enabling the company to secure necessary components without financial strain.
- Smooth Operations: Factoring the work-completed invoice allowed the company to maintain cash flow and meet payment terms with other vendors.
- Successful Project Completion: The financing solutions enabled the company to pay their subcontractor within a week of project completion, ensuring all parties were financially satisfied.
- Project Success: The cybersecurity integration company successfully navigated and completed the complex security camera upgrade project, thanks to SouthStar Capital’s support.
With SouthStar Capital’s $250,000 Factoring Facility, the cybersecurity integration company overcame financial hurdles and completed their DFAS contract successfully. This case demonstrates the power of tailored financing solutions in enabling businesses to tackle complex projects and achieve their goals.
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